System and method for warranting against leasing losses

Abstract

The method herein provides for the issuance of a warranty contract following an analysis of a lease that may be susceptible to penalties for acts of omission by a lessee. One typical lease requires a notice within a timeframe of the lessee's intent to purchase, renew or return the equipment at the end of the term. If the lessor in the prescribed timeframe does not receive the notice there is an automatic extension or renewal of the lease. Different leasing companies have different notice periods and different “automatic” extensions. The present invention is additionally drawn to a lease expiration or renewal notification and warranty contract system that collects data on one or more lease term risks; analyzes the data associated with the subject matter of the lease, binds and generates a warranty contract and also notifies the lessee and / or lessor regarding the term provision at an appointed date and time.

Description

RELATED APPLICATION [0001] This application is a continuation-in-part of co-pending-commonly assigned: U.S. patent application Ser. No. 11 / 414,815 entitled “System and Method for Insuring Against Leasing Losses” filed May 1, 2006, the disclosure of which is hereby incorporated by reference in its entirety.FIELD OF THE INVENTION [0002] This invention relates to a method and system for warranting against losses associated with a lease. BACKGROUND OF THE INVENTION [0003] Leases generally require a lessee to notify a lessor within a contractual timeframe of its intent to renew, return or purchase the equipment or property at the end of the lease. In the event that a notification is not provided as required under the terms of a lease, an unintended (and often costly) expense may be incurred by the lessee, such as a forced extension or renewal of the lease for a fixed or indefinite timeframe. Lease notice provisions typically provide that a notice of the lessee's intent to purchase, renew...

AI Technical Summary

Benefits of technology

"The present invention is about a computer system and method that uses a warranty contract to cover additional payments on a lease due to non-notification by the lessee. The warranty contract can be an add-on to existing business insurance or a standalone financial product. The method involves collecting and analyzing data from a leaseholder population, identifying a risk with a term having subject matter that warrants a warranty contract, applying for coverage against the risk, and providing a warranty contract that accounts for the countervailing financial effects of the term risk. The technical effect of the invention is to provide a way to protect leaseholders from unexpected risks and to offer a financial solution to mitigate the impact of those risks."

Problems solved by technology

In the event that a notification is not provided as required under the terms of a lease, an unintended (and often costly) expense may be incurred by the lessee, such as a forced extension or renewal of the lease for a fixed or indefinite timeframe.

These lease provisions are difficult for lessees to manage, and almost all lessees risk missing this window and hence, risk paying large amounts of evergreen rent.

Images